On redeeming mutual fund units, the asset management company requires you to pay a fee, especially if you redeem the units shortly after buying them. Exit load is deducted from the total sale proceeds to determine the net redemption amount. In simple terms, it is a penalty imposed by the fund house for prematurely exiting the scheme.Fund houses impose this charge when an investor redeems either partially or fully the units of their mutual fund within a specified investment period.
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